Affirm (AFRM) reports earnings on Thursday after the close, and some analysts think the company might beat and raise. While shares have been performing poorly in the last few months, some traders may be willing to take a chance on Affirm stock at a much lower price than it was trading last year.
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Option traders are pricing in a potential 20% move in the price of Affirm stock over earnings. That means put and call options are very expensive at the moment due to the uncertainty around the earnings announcement.
One way to take ownership of a stock for less than the price is via an option strategy called a cash-secured put.
Affirm Stock: This Put Trade Lasts Until Feb. 18
A cash-secured put is a slightly less bullish trade than buying the stock. It is considered a neutral to slightly bullish trade.
A cash-secured put involves writing an at-the-money or out-of-the-money put…
